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China ready with additional tariffs

The threat comes two days after President Donald Trump ordered his administration to consider increasing the rate of tariffs it has already proposed on $200billion a year of Chinese goods - everything from chemicals to handbags - to 25 percent from 10 percent. European soybean imports from the USA were likely to increase naturally.

China proposed a 25 percent tariff on imports of copper ore and concentrate from the us, which shipped about 70,000 tons to the country previous year.

"It's important countries refrain from devaluing currencies for competitive purposes", a senior administration official said, and although he didn't accuse China of acting in that fashion, the implication was clear.

In May, China announced that it would cut tariffs on imported cars from 25% to 15% on 1 July in a move seen as an attempt to reduce trade tensions with the US.

The move comes after Trump asked USA trade officials to consider imposing a 25% tariff on $200bn of Chinese goods, up from the 10% level originally proposed last month, as the two countries attempt to reach an agreement on trade.

A commentary in the official Xinhua news agency said: "The United States has repeatedly resorted to threatening and deceitful routines, trying to force China to compromise, both overestimating its own bargaining power and underestimating China's determination and ability to defend its national dignity and the interests of its people".

"Tariffs are working far better than anyone ever anticipated", he wrote on Twitter.

The tariffs discussed in this week's pronouncements are still in the threat stage; they have not yet taken effect. Taken in totality, the new Chinese proposals will cover $60 billion in USA imports.

Chinese leaders have offered to narrow their politically sensitive trade surplus with the United States by purchasing moreAmerican goods. Last year, China imported about $130 billion in goods from the United States. A promise that Europe will buy more soybeans and liquefied natural gas from America, to the extent it means anything, is a promise of managed rather than free trade.

The dispute is part of broader USA complaints about global trading conditions that have prompted Trump to raise duties on steel, aluminum, washing machines or solar panels from Canada, Europe, Japan and South Korea.

The foreign ministry spokesman appealed to Washington to negotiate but could not confirm reports the two sides were setting up talks.

Timing will depend on the actions of the United States, the Chinese Commerce Ministry said in a separate statement.

For example, he claimed that China was financing advertisements to convince Americans to stop Trump's trade agenda.

Asian countries have voiced concerns about the potentially devastating impact of a US-China trade war, with ministers calling for the acceleration of talks for a huge Beijing-backed free-trade deal that excludes the United States.

It's the first time the fuel has been ensnared by the expanding trade war and billions of US dollars may hang in the balance.

The US trade deficit - the gap between exports and imports - widened by 7.3% to $46.3bn in June.